The Service now addresses the taxation of crypto rewards received through staking.
Some taxpayers have taken the position that token rewards they received through a proof-of-stake blockchain are created property that isn’t taxed on receipt, but instead, on disposition.
The IRS disagrees with this stance, stating that when one stakes cryptocurrency native to a proof-of-stake blockchain and receives additional crypto units or tokens as validation rewards, the fair market value of those token rewards is gross income in the year the taxpayer has dominion and control over the tokens.
Rev. Rul. 2023-14